Fact Pattern 13-1 Damian Owns a Pick-Up Truck and a Motorcycle.He Sells the Motorcycle.He

question 27

Multiple Choice

Fact Pattern 13-1
Damian owns a pick-up truck and a motorcycle.He sells the motorcycle to Eden for $10,000.Eden pays for the cycle with a check, knowing that she had insufficient funds in her account to cover the amount.A week later, Damian files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 13-1.Regarding the sale of the cycle, the bankruptcy trustee can

• A)cancel it as a fraudulent transfer.
• B)cancel it as a voidable preference.
• C)not cancel it or sue to recover the price because it occurred before Damian filed his petition in bankruptcy.
• D)not cancel it, but can sue Eden to recover the price.

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Definitions:

Output Supplied

Refers to the quantity of goods or services that producers are willing and able to sell at a given price level within a specified period.

Aggregate Demand

Complete economic consumption desires for all goods and services, measured at a particular total price level within a predetermined timeframe.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a base year.

Interest Rate

The interest rate is the percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.